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CIPS Operations Management Sample Questions:

1. The methodology for defining customer requirements and creating products that meet those needs is commonly known as which of the following?

A) value engineering
B) defining business needs
C) business process re-engineering
D) quality function deployment

2. When processing low volumes of a product, specialisation is high and it is therefore possible to create products at a lower unit cost. Is this TRUE?

A) yes- when producing low volumes of a product, cost savings can be transferred to the customer
B) no- creating products in low volumes often leads to a higher unit cost
C) no- the volume of products created does not impact upon unit costs as these are fixed in advance
D) yes- staff gain specialities when there is less products to create

3. Below are details of 4 local manufacturing companies. For each company you must decide what the main objective is for the organisation and what layout their manufacturing plant has.
Company 1: This company creates large, delicate products which are hard to move. The main aim of the company is to stand out from competitors due to the superior level of materials used and by using the latest forms of technology to create the items.
Company 2: This company produces 72 different items and has designated zones within its premises for the creation of each item. The zones are organised based on the technology used and some products may be passed between different zones to be completed. The company creates many different items in response to changing customer demands, with many product lines only lasting a single season.
Company 3: Company 3 creates one product which flows along a single production line, with staff members adding to the product on four different occasions. The company must produce a high volume of this singular product in order to break even. Therefore, there is always a steady flow of items through the plant and it is important there is no stoppage in production.
Company 4: This company produces small batches of products, as and when they are ordered by customers. Due to uncertainty in demand, a high profit margin is added to the cost of each item. Teams in the factory are grouped into different areas depending on the technological process they are using.
Complete the table below by listing the objective criteria and plant layout for each company. Each response should only be used once: flexibility, speed, quality, cost, functional layout, cell layout, product layout, fixed-position layout

Which of the following will you put into box 6?

A) fixed-position layout
B) cell layout
C) product layout
D) functional layout

4. Doug's Doughnuts Ltd is a large manufacturer of doughnuts. They produce in excess of 100,000 doughnuts per day which are boxed and sent to supermarkets and other retail outlets for sale. Large pieces of machinery are used to make the doughnuts. Which form of maintenance would be the most appropriate to use at Doug's Doughnuts?

A) run to breakdown
B) condition based
C) preventative
D) reactive

5. Little Joy Ltd is a large company with several functional departments. Below are details of four departments. For each, you must decide which functional area of the business the department is, as well as the SERVQUAL Gap that each Department Lead is concerned with.
Department 1: This department is concerned with the creation of products. The products are created in line with BS EN 716-1 and undergo vigorous tests before they leave the factory. Many customers are unaware of the additional costs of testing to BS EN 716-1 and complain about the price of this product line.
Department 2: Other departments of the business are internal customers of this functional area and approach the Department Lead when they require something to be bought. Often the internal customers have unrealistic expectations of the timescales involved in the process and the Department Lead spends a lot of time explaining lead times and logistics.
Department 3: This functional area creates the budgets for the company and emails these to the Department Leads at the beginning of every quarter. Due to the complexity of the documents, other functional areas of the business often don't understand the information provided.
Department 4: This area of the business is concerned with revenue, which has recently slumped. The Department Lead is conducting market surveys to find out the reason for this.
Complete the table below by listing the Functional Area of the business, and the corresponding SERVQUAL Gap. Each response should only be used once: procurement, finance, sales, production, satisfaction gap, delivery gap, standards gap, communication gap.

Which of the following will you put into box 6?

A) delivery gap
B) standards gap
C) communication gap
D) satisfaction gap

Solutions: